Abraham Fruchter & Twersky LLP Files Class Action Suit Against Refco, Inc.

Abraham Fruchter & Twersky LLP announces that a class action lawsuit was filed on behalf of purchasers of the securities of Refco Inc. ("Refco" or the "Company") (NYSE: RFX) between August 11, 2005 and October 7, 2005, inclusive (the "Class Period"), including purchasers of the Company's shares pursuant or traceable to the Company's initial public offering (the "Offering") on August 11, 2005. The action seeks to pursue remedies under the Securities Act of 1933 ("Securities Act") and the Securities Exchange Act of 1934 (the "Exchange Act").

If you wish to serve as lead plaintiff, you must meet certain legal requirements set forth in the applicable law and file appropriate papers with the Court by December 12, 2005. You do not need to seek appointment as a lead plaintiff in order to share in any recovery. Under certain circumstances, one or more Class members may together serve as lead plaintiff. You may retain Abraham, Fruchter & Twersky, LLP, or other counsel of your choice, to serve as your counsel in this action or you may choose to do nothing and remain an absent class member. If you have any questions concerning this case or your rights or interests with respect to this matter, please contact plaintiff's counsel: Jack G. Fruchter, Esq. or Ximena Skovron, Esq. of Abraham, Fruchter & Twersky, LLP, One Penn Plaza, Suite 2805, New York, New York 10119, by telephone at (212) 279-5050 or toll free at (800) 440-8986, by facsimile at (212) 279-3655, or by e-mail at jfruchter@aftlaw.com or xskovron@aftlaw.com.

Refco is a leading independent provider of execution and clearing services for exchange-traded derivatives and a major provider of prime brokerage services in the fixed income and foreign exchange markets. The complaint alleges that Refco and Refco insiders completed an initial public offering of Refco common stock on August 11, 2005, selling 26.5 million shares at $22 per share for proceeds of $583 million.

The complaint further alleges that, three months later, on October 10, 2005, before trading opened, defendants revealed that the Company had been carrying an undisclosed receivable from its Chief Executive Officer, Defendant Phillip R. Bennett, in the amount of $430 million, that Bennett was taking a leave of absence, and that Company financial statements issued since 2002 could no longer be relied upon. The announcement stunned the market, driving down the price of Refco shares by 44.4%, from a closing price of $28.06 on October 7, 2005 (Friday) to a low of $15.60 on October 10, 2005 (Monday). Trading in Refco shares was halted on the morning of October 11, 2005 pending additional news, and, after resumption of trading, closed at $13.06, down 11.2% for the day.

On October 12, 2005, The Wall Street Journal reported that an investment firm controlled by Bennett had paid Liberty Corner, a New Jersey hedge fund, to help him hide that he owed Refco hundreds of millions of dollars, and that the SEC had launched an investigation of the Company. Later that day, Bloomberg News reported that Bennett had been arrested by federal authorities on charges of securities fraud stemming from his failure to disclose in public filings with the SEC the existence of hundreds of millions of dollars in transactions between Refco and a company he controlled.

Plaintiff seeks to recover damages on behalf of all purchasers of publicly traded securities of Refco during the Class Period (the "Class"). The plaintiff is represented by Abraham Fruchter & Twersky LLP, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.

Jack G. Fruchter, Esq. Abraham Fruchter & Twersky LLP (212) 279-5050 (800) 440-8986 toll free (212) 279-3655 fax Email Contact Ximena Skovron, Esq. Abraham Fruchter & Twersky LLP (212) 279-5050 (800) 440-8986 toll free (212) 279-3655 fax Email Contact